The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
KUALA LUMPUR (Feb 28): The equity rout, which was triggered by the Covid-19 outbreak gathered steam today, especially after the overnight bloodbath on Wall Street; the Dow Jones Industrial Average has tumbled more than 2,000 points this week. A strong wave of selling has swept across Asia. Malaysia, which is currently embroiled in a political crisis, is not spared from it. The RM20 billion stimulus package that was unveiled by interim Prime Minister Tun Dr Mahathir Mohamad did not entice any investing interest. The benchmark index FBM KLCI fell 1.52% or 22.95 points to 1,482.64 points. The fall was not as sharp as its regional peers, such as Japan's Nikkei 225, which shed 805.2 points or 3.67%, Thailand’s SET Index, which tumbled nearly 4% or 55.31 points, Singapore’s Straits Times Index, which lost 100.6 points or 3.23%. Dealers explained the fall on local bourse was not as steep mainly because of lower exposure to foreign funds given that most of them ...